VeChain (VET) is an enterprise-level solution to supply chain management that uses distributed ledger technology (DLT) to improve business processes.
The blockchain aims to enable direct contact between businesses and customers by cutting out intermediaries such as brokers, distributors and wholesalers, thereby making inventory management more efficient.
This guide helps explain what the project does and how to invest in it.
What is VeChain?
VeChain is a cryptocurrency and a blockchain solves a real-world problem: supply chain management and business productivity.
The project was launched in 2015 by the former chief information officer of Louis Vuitton China, Sunny Lu. What started as a software configuration management (SCM) tool has now expanded its function to facilitating Internet of Things (IoT) transactions and issuing Initial Coin Offering (ICO).
VeChain has two native tokens, namely VeChain Token (VET) and VeChainThor Energy (VTHO). The former is used to account for transactions and the latter is used as ‘gas’ or energy to power applications running on the blockchain.
VeChain uses blockchain technology to enable fast transactions, transparent and smooth flow of information, and efficient collaboration. The cutting-edge operational model of VeChain curbs the bottlenecks that arise due to information being siloed among multiple stakeholders.
Smart chips called radio frequency identification (RFID) sensors are used by VeChain to enable authorised stakeholders to keep check of everything regarding the product from the manufacturing facility to the final delivery.
Unlike many blockchain-based platforms, VeChain requires low computational power to maintain network security and consensus integrity.